Insurers vital for economic growth

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THE insurance industry can play a fundamental role in supporting economic sustainability by protecting governments and consumers from losses, the Zimbabwe Association of Funeral Assurers (ZAFA) has said.
Solomon Chikanda, the ZAFA President, also said companies in the funeral sector contribute to the national revenue through income taxes.
“By investing in prescribed assets the funeral assurance sector assists the government in implementing critical projects like housing and other key infrastructure that includes dams,” he said.
Funeral assurance companies are required by law to invest at least 7,5 percent of their assets in prescribes assets.
“So essentially the funeral assurance and services sector contributes significantly to the country’s gross domestic product. It is in this regard that we appeal to the government to assist this fast growing industry in its areas of need,” said Chikanda.
This comes as ZAFA is preparing to hold its annual conference from September 17 to 18 in Bulawayo under the theme “Funeral Business a Call to Serve.”
Chikanda said this year’s theme was chosen with the intention of striking a chord to all funeral practitioners that engage in funeral business that the industry was far much beyond profit or financial benefits.
“The funeral business comes with another inherent social and moral obligation to ensure that humankind gets decent and dignified burial when the eventuality of death strikes. This is an onerous obligation which in many times requires those with a lot of passion, empathy and sense of sacrifice,” he said.
Newly elected mayor of Bulawayo, Solomon Mguni, will be a guest of honour at the event.
“We are anticipating at least 200 delegates, comprising of international, regional and local participants. We have already received confirmations and bookings from USA, Canada, Botswana, South Africa, and Kenya,” Chikanda said.
He further indiated that funeral industry associations that will be represented at the conference include, the African Funeral Assurance and Services Association, the National Funeral Directors and Morticians Association of the United States of America and the South African Funeral Practitioners Association of South Africa.
Other associations to be represented include, the Funeral Services Association of Kenya and Botswana Funeral Parlours Association.
Speakers expected at the conference include Hari Close and Edith Churchman who are experienced funeral business operators from the United States of America, Ignite the Dream Coaching and Consulting chief motivating officer, Sam Thiara from Canada and Funeral Parlour Association of Botswana president, Bushie Mosala.
“These together with other local presenters will ensure that our delegates get their value for attending this year’s episode of the funeral industry conference in Zimbabwe,” he said.
Commenting on the funeral assurance’s performance during the first eight months of the year, Chikanda said the industry has been fairly stable despite the current economic challenges.
“Challenges were however experienced in areas of premium collection due to the liquidity challenges as well as spiralling administrative costs resulting from the multiple pricing system caused by the foreign currency shortages.”
Going forward, he said the industry remain hopeful and believe that the new government is going to come up with robust policies that support business growth.
“If the industry starts to tick the funeral assurance industry will automatically rebound as disposable incomes increase and part of it will be used to buy funeral insurance.”
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